- Sony gives Toshiba something in return for its troubles -- Japanese Cell chip plants for $835M
A new twist has emerged with the death of HD DVD. After Warner, Best Buy, Walmart and Netflix jumped on the Blu bandwagon, the fate of HD DVD was already sealed.
Despite the grim news, the principle HD DVD developer, Toshiba Corporation, refused to initially comment on its plans for its HD DVD. However, as many analysts predicted, Toshiba came out last week and officially surrendered to Blu-ray.
Many saw Toshiba's willingness to give up on HD DVD as a logical business decision and perhaps an admission of Blu-ray's superiority. However, there might be a little more to the story. Reuters reports that on Wednesday Toshiba and Sony Corporation, one of Blu-ray's principle developers, agreed to a major business deal, reached just after Toshiba made its final HD DVD decision.
Sony agreed to sell it microchip processing facilities in western Japan for approximately $835M USD. These facilities currently produce Cell processors and RSX graphic chips. Toshiba will enter the joint venture with Sony on April 1, 2008.
Toshiba, IBM and Sony were the principle developers of the Cell microprocessor, but Toshiba previously showed little interest in using the chip for any of its own...